BUSN 380 STUDY Future Starts Here/busn380study.com BUSN 380 STUDY Future Starts Here/busn380study.com | Page 57

Question 12. While collateralized loans may provide lower interest
rates, these loans have a disadvantage because
the loan must be repaid in a short period of time.
you ruin your credit rating.
the loan is difficult to obtain.
commercial banks do not make such loans.
the assets used as collateral are tied up until the loan has been
repaid.
Question 13. One source of the most expensive loans is through
parents.
finance companies.
banks.
friends.
credit unions.
Question 14. Which one of the following is a signal of a potential debt
problem?
Paying the maximum balance due each month
Borrowing money to pay old debts
Using savings to pay for major purchases
Receiving notice of prompt payment from creditors
Occasionally working overtime and moonlighting